Watering the Economy

Mahatma Gandhi once said, "The world has enough for everyone's need, but not enough for every one's greed."

Unfortunately, this is the truth about the world's water supply today. Water scarcity is a fact of life faced by more than two billion people globally. In India, this problem is particularly pronounced. Millions of Indian citizens suffer from a lack of access to clean drinking water. With the second largest population in the world, the problem is only expected to grow. By 2050 India will overtake China's population, when it is expected to reach 1.6 billion people. With a growing population, comes the stress associated with it. A massive agricultural sector to support food requirements, a growing economy to sustain the livelihood of citizens and the need for drinking water will only place a larger burden on quickly dwindling water bodies.

The World Health Organization reports that 97 million Indians lack access to safe drinking water, while 21 percent of the country's communicable diseases are transferred by the use of unclean water.

Water, pollution and over-pumping are deemed as critical issues but the largest issue by far is the mismanagement of water resources. If the last five years are a peek in to times ahead then erratic and unpredictable weather conditions can be expected to worsen due to climate change. A large fear associated with a shortage of water is that it may quickly become the root of domestic and in-ternational conflict.

Mr. Arun Lakhani, MD of Vishvaraj Infrastructure and an ardent promoter of water supply solutions states, "Mismanagement of water is obviously a human process issue. Unclear laws, government corruption and industrial and human waste have drastically reduced the amount of water available and have contributed to the pollution of huge quantities of water."

In their defence, the Indian government has had to play a balancing act, ensuring they meet the demands of urban and rural india, across different social strata, meeting economic and environ-mental targets. Today they stand at an important threshold, where a change in their actions, processes and protocols can prevent devastating water scarcity.

According to The World Bank, after China, India is the largest user of ground water in the world. 114 million Indians will face desperate shortages if something is not done soon.

The Solution.
Any solution to the water scarcity problem must come from within the nation. For example, Andhra Pradesh has successfully pioneered a highly ejective program of self-regulation. Involving the community to manage water schemes and creating awareness campaigns amongst farmers has allowed the state to reduce its water consumption.

However in order to make a large difference and curb the problem before it grows beyond us, the government will have to involve the private sector which has the financial resources needed to bring in change at a nation-wide level and the streamlined processes required to complete gigantic projects.

Mr. Arun Lakhani believes that a partnership between the Public and Private sector is the best way forward. "To recycle and reuse water in order to reduce the stress on natural sources and avoid conflicts is what is needed."claims the PPP expert.

Those who support the PPP model are of the understanding that a privatized approach would improve efficiency, encourage innovation and prevent waste. In fact the usage of treated water for industrial purposes is expected to reduce fresh water consumption by 20,000 MLD, creating extra supply for urban use. Such a model would also allow local municipalities to earn extra income as the treated water will be sold to industries and the revenue will be shared between the Urban Local Body and the private company.

A great example of this is the Sewage Water Reuse program started in Nagpur under a PPP model, spear headed by Lakhani. 100% of funding is provided by VIL and was the first PPP project in water supply in India, which proved to be a great success. When the water sale to a nearby thermal plant begins, the revenue will be large enough to cover the maintenance and operation cost of the treatment plant for the coming 30 years.

There are several challenges that private players must face along the way. Government protocols and policies often create difficulties in execution of projects. Bureaucratic requirements often hold up approvals and the delay translates to extra costs for companies. Additionally, in India, water legislation, water recycling, efficient re-use of water, water conservation and infrastructure has been ignored for far too long. Due to India's historical background, water has never been managed as a scarce resource but rather as an abundantly available resource. To break away from this mindset, private companies must not just plan and design solutions but raise awareness through knowledge sharing.

Indian citizens are skeptical about building partnerships with the Government or a private sector company, deeming both as unreliable, corrupt or profit driven. "The trust of the people, in what we need to accomplish and our intentions are of utmost importance. India will not be able to prosper without bridging the gap between the Public, administrators and developers through transparent communication, advices Mr. Lakhani.

The participation of the people in governance and local development and planning is the only sustainable way to build a successful PPP, while benefiting the environment, public health and econ-omy.

In order to avoid a decrease in agricultural production, an industrial stagnation, water related epidemics and a possible war over water India must take action. It must make water supply and waste water management a national issue; much like food availability and economic growth was in the past decades. People need to begin harvesting rainwater, treat waste effectively, and regulate wa-ter usage and most importantly conserver water. On the national level, the Government will be wise to explore all its options, including PPPs and ensure that a monitoring system is in place, to ensure efficacy, transparency and a better relationship with the citizens.

Making 24x7 Water Supply a Reality Across India

India has quickly evolved and grown to become a super power in today's global scenario. The will and handwork of its citizens and favorable economic conditions have allowed this. Now, it needs to adapt and learn how to sustain itself. With a population of 1.2 billion people and counting, it is safe to say that India has long reached its tipping point, and must now take focused measures.

It is clear that with the growing demands, any government with their existing resources is unable to provide stable and well-built infrastructure such as roads, health care, electricity, water and waste management. Even with 2013-2014 witnessing a gross tax collection of ₹13.64 trillion (US$210 billion) and not including regulatory fees collected, our nation struggles to create adequate systems. One must take into consideration that the government makes very tough decision regarding the expenditure of this money and must prioritize amongst several other aspects such as scientific research, agricultural support and military defense, to name a few.

However, a solution has emerged in the form of Public Private Partnerships (PPP), a model wherein the government works with either one or a consortium of private companies, in order to achieve goals. A great example of this is Nagpur. The city has successfully implemented India's first ambitious 24x7 water supply scheme, in partnership with Veolia. With a population 2.7 millions people, this project has proven to be a great challenge, an experiment and a model to be followed across the nation. The PPP venture has been been functional for the last three years.

Similarly, another PPP explored a 200 MLD waste water treatment and reuse project. Treated waste water was to be sold to nearby thermal power plants and industries.

A leading expert in the field of PPP, Mr. Arun Lakhani, MD of Vishvaraj Infrastructures, believes PPPs to be the best way forward in tackling India's growing needs. "Going the extra mile, is what Private players are great at. Innovation is the key and can only be achieved when the government works with companies and keeps the People in the loop"

With success stories such as the one unfolding in Nagpur, it is time to apply what we have learnt to other parts of India. In fact, as of 2015 several states and cities have already begun signing PPP agreements, especially in the water supply and waste water treatment sectors. Punjab, Haryana, Panchkula, Gurgaon, Faridabad and Karnal are some of these.

The big question posed by the government and the public is "How can PPP help with water related issues?"The answer lies in the way private companies function. Known to be process driven and financially more resourceful, private sector players carry all the ingredients needed to implement large scale infrastructure projects. Significant investments are needed despite government announcements of creating Smart cities and AMRUT schemes. In addition, challenges such as tariff revision to meet operating costs, revenue collection risk and lack of base line data for analysis also need to be overcome.

After Nagpur, Haryana and Punjab plan to implement state-of-the-art water supply systems and water waste management protocols. PPPs would improve efficiency in water systems, water treatment plants and in the reuse of water. Depletion in groundwater, in these agriculturally important locations, has made them the ideal choice for this model.

"It is imperative to take action before it is too late. It is the responsibility of every citizen and more so of companies, capable of making a difference.", stated Mr. Lakhani.

However, Private companies face their own issues when trying to assist the nation. PPP models have not seen much expansion in the last few years. In order to be successful, political and administrative will is needed but more importantly the involvement of individual citizens. The largest obstacle comes in the way of financial risk mitigation. A structured system is needed to ensure that local bodies are able to fund the developments needed through appropriate channels.

"It would be wise for the central government and local municipal bodies to quickly develop systems that can be monitored and sustained across different states."Says Lakhani. There are several private players capable of taking on these challenges but as with all large scaled, investment intensive projects, transparency is necessary, as is the flexibility of all those involved.

The Ganga Rejuvenation Plan, has been keep under close watch due to its economic, social and religious importance. The same diligence needs to be shown across all projects. A "Reduce, Recycle and Reuse"model is perhaps the best way forward for India's water and waste water management.

Arun Lakhani: Entrepreneur Par Excellence

It is not very often you come across a personality who,despite keeping a low profile, has a huge impact on a grand scale. One such personality is the Chairman & Managing Director at Vishvaraj Infrastructure Ltd. Mr. Arun Lakhani. He has been a beacon of positive social change aimed at bettering the lives of the common man.

To understand the magnitude of his achievements we need to look at his humble beginnings. Hailing from the small village of Malkapur from Buldhana district, he did his schooling from a Marathi medium school, going on to complete a degree in B.Sc from Amravati and an M.Tech in Petro chemicals. Yet he has achieved success that many dream about but only handful achieve.

He began his career in software writing and data processing. But being a born entrepreneur, it was only a matter of time before he eventually started this own company; Mahagas. This company was a supplier of LPG gas and was one of the earliest private players in this sector when LPG was decentralized in India.

Mahagas was just the beginning of his glorious achievements. He went on to acquire Vishvaraj Infrastructure Limited (formerly known as Vishvaraj Housing company private limited) a company specializing in infrastructure development. However, his dream was always to be a pioneer and his vision led him to do ground breaking work in waste water management and water conservation.

Realizing the importance of water as a resource, he wanted to ensure that it is not carelessly wasted. He eventually ventured into waste water management projects and is today one of the leading private organizations that works with various state governments, taking up Public Private Partnership projects in the space of water management, conservation and provision.

To understand how impeccable his vision is, we do not need to look any further than the water project done by his company Vishvaraj Infrastructure Limited in Nagpur. The project was done in collaboration with Municipal Corporation of Nagpur. The result was that a large portion of population of Nagpur is now receiving water supply 24x7. Other projects on similar line have been started by the company in South India.

It is projects like these that cement his position as an extraordinary visionary.

Mr. Arun Lakhani is a multifaceted personality and few people know about his passion for sports; especially the game of Badminton. As a result of his love for Badminton, he has actively participated in the activities that led to the advancement of the game. He is a prominent member of the executive committee of Maharashtra Badminton Association and has just added another feather to his cap by being appointed as the president of Maharashtra Badminton Association (MBA).

There is no doubt that Mr. Arun Lakhani is a harbinger of change and a man with grandiose vision. If you are looking for a role model or inspiration to bring positive change in the society then Arun Lakhani is the one you should be looking up to.

Arun Lakhani: A Visionary

It is said that innovation distinguishes a leader from a follower. The vision of a single man can change the face of the world. One such visionary is Mr. Arun Lakhani, today MD and chairman of Vishvaraj Infrastructure. A simple man from the seat of Vidarbha – Nagpur has made a long journey starting of in software and data processing to being one of the leading authorities on Public-Private-Partnerships (PPP) in India.

Arun Lakhani was the primary driving force behind the Nagpur 24X7 water project, a landmark PPP project by the Nagpur Municipal Corporation to provide hygienic drinking water to the city especially the slum dwellers. Nagpur essentially opened it's doors and mind to an opportunity that would help build a streamlined and efficient model which could be replicated in the future.

Led by Lakhani Nagpur became the first city in India to build a 24/7, fully pressurized drinking water supply system. A joint venture company aptly named Orange City Water was created and entered a concussion contract under the Jawaharlal Nehru National Urban Renewal Mission (JnNURM)

Taking up the mantle for waste water management and water conservation in the city Lakhani is today a speaker and delegate at various national and international water conventions. Mr. Arun Lakhani participated in the Global Water Investment summit as a speaker and addressed the Session on 'Water Infrastructure Finance' on 7th May 2014 in London, UK. Describing the Indian water scenario, he emphasised on Benchmarking best practices in PPP, Stakeholder Engagement, Innovative Financing Initiatives and Risk Mitigation Strategies.

Driven by his mission to have a sustainable supply of clean water in India he was recently invited by the Planning Commission to be part of the committee on Industrial Water in addition to being a prominent member of all recognized trade organisations like CII, FICCI & Assocham.

His vision is to have water sustainability by cleaning and maintaining the river water supply and his company leads various R&D projects towards the same. In addition he is working on core water supply mechanisms in terms of reduction of non-revenue water, pressure maximization utilizing level surveys, tank capacities, quick speed house service connection etc.

With visionaries and leaders like Arun Lakhani the Government and citizens of India can rest assured that the dream of a Swach Bharat and Clean Ganga will be a reality soon.

Arun Lakhani: Social Entrepreneur & Philanthropist

Arun Lakhani, Chairman & Managing Director Vishvaraj Infrastructure Ltd., on his education, career, and how the company was transpired. It gives a glimpse on his journey as an entrepreneur.

The Ganges - A New Hope

The River Ganges is considered to be the holiest river in India with a deep and long history of spiritual, economic, and religious significance. A life-giving source, the river provides water to 40% of India's population. The river on its path from the Himalayas, where it rises from, to the Bay of Bengal, crosses 2500 km through the northern and eastern states of India. Geographical boundaries do not hold back the mighty river, which flows through parts of Nepal, China and Bangladesh. It accounts for 30% of our country's water resources and 26% of its landmass. The Ganges has been declared India's National River.

Yet the fate of River Ganga itself seems bleak. It is one of the most polluted rivers in Asia, crossing the WHO defined levels of permissible pollutants by 3000 times. Everyday 1.7 billion litres of waste such as defecation, untreated industrial waste and pollution during religious events runs into the river. Additionally, about 89 million litres of sewage is disposed off in the river daily. The water is very quickly becoming unfit for drinking, bathing and even agricultural purposes. The discovery of Mercury in the water has raised alarms.

Earlier governments have attempted to clean the Ganges. Rajv Gandhi, in 1984, began a campaign to restore the river and rebuild the banks. However, due to a lack of technological resources and expertise at the time, the complex problems were unresolved.

Three decades later, on August 15th 2014, current Prime Minister Narendra Modi began the "Clean India"movement. The Clean Ganga Project is of national significance and the roadmap towards achieving it is not a smooth one. Billions of Rupees, massive intellectual and physical resources and meticulous governance are essential components required to take on this mega problem. However, it also represents a great business opportunity for those involved in urban planning, clean technology, wastewater management, sanitation, agriculture and infrastructure.

"The Government has taken a great step forward but in order to maintain momentum and achieve objectives it is imperative that the private sector play a large role in the execution of national plans." states Mr. Arun Lakhani, MD Vishvaraj Infrastructure and a great promoter of government-private relationships.

The "large role"mentioned by Mr. Lakhani can be best defined as a "Public Private Partnership"or a PPP. Many believe that only private organizations with their streamlined processes and sense of accountability towards investors would be capable of bringing this much sought after change. Some experts have even gone as far as to state that only foreign companies with their technology and managerial prowess can solve the complexities of this situation. In fact, foreign direct investment regulations may be relaxed to attract funding and technology.

A PPP model has given rise to several opportunities and with vigilante monitoring and diligent reporting, a clean River Ganga could be a reality. The current situation, however, is dire. Thousands of villages need toilets, waste management facilities and sewage treatment plants. Small manufacturing units often dump toxic waste and in order to prevent this, treatment facilities will need to be constructed. Modern technology makes it possible to remove pollutants from the water and treat it but this too will require resources and budgetary expenditure. Long term solutions highly depend on the education of people living along the banks, development of sustainable practices within the agricultural community and the prevention of chemical fertilisers flowing into the river.

"The big question is, "Who will take on this colossal task?". The answer is "Everyone, starting from the government and trickling down to individual citizens. Everyone needs to be responsible."said Mr. Lakhani.

Indeed, the government has begun on this journey and has beckoned several individuals and organisations to join it. With a massive budgetary requirement of $15 billion and a timeline of 8 years to achieve full restoration, the Government has turned towards private investors. Some reports have suggested that 70% of the funding will be provided by the Private sector, across the coming decade.

With the opportunity to make a change and earn profits comes a large risk. Not every private player is willing to enter into a PPP, let alone be eligible. The long term nature of this project and the perceived issues of working with the Government has kept several players away from the Clean Ganga Project. Then there are those who have risen to the occasion and hope to make the most of the current situation.

Not surprisingly, international companies have been quick to make a move. Israeli and Danish companies were some of the first to show interest in entering a PPP. Some 200 Israeli companies have been considered capable of purifying the Ganga.

In the south, the state of Karnataka has allowed NaanDanJain, an Indian-Israeli company, to create a test farm to study drip irrigation with the hope of saving water. Agriculture and the irrigation industry are at a stage where their growth is inevitable and this has attracted attention of foreign players.

Gujrat has already opened its doors to a group of Danish companies who are implementing a water management project. The PM's state aims to reduce pollution through this pilot project, study the process and spread the knowledge. Revolutionary ideas, transition of expertise and a change in practices are the goals.

A natural way of cleansing the river water, by creating a series of channels and wetlands, is being explored by Water Revive, a bio-engineering company which aims to use low-maintenance, natural solutions.

"With a problem this complex.it only makes sense that different approaches are explored within the PPP model", states Mr. Lakhani, an expert in executing PPPs.

The Israeli Ministry of Industry, Trade and Labor is leading the NewTech initiative which aims at matching Indian water, energy and environment technology companies with Israeli counterparts to discover solutions.

This is just the first wave of hope that India is witnessing. There is much to be done and Indian companies will also play a large role in the coming years, but it is a great sign to witness support from countries across the world. It has helped to reinforce the benefits of a PPP and encouraged several National players too. There will be medium and long-term projects of varied nature and each will be a great chance for private companies to come forwards and help in shaping the evolution of the Ganges and the Nation.

Clean Ganga - A River full of Hope

Jawaharlal Nehru once stated, "The Ganga to me is the symbol of India's memorable past which has been flowing into the present and continues to flow towards the ocean of the future."

Today, although the words still hold true, the future of the great River Ganga itself seems bleak. The mighty river cultural, ecological and critical economic value for the entire nation. The river on its path from the Himalayas, where it rises from, to the Bay of Bengal crosses 2500 km through the northern and eastern states of India. Geographical boundaries do not hold back the mighty river, which flows through parts of Nepal, China and Bangladesh. It accounts for 30% of our country's water resources, 26% of its landmass and 40% of India's population lives in villages, towns and cities close to the river which is why as of 2008 the Ganges has been declared India's National River.

Without any other information, it may come as a surprise to many that this nationally significant water body is among the top 10 most polluted rivers, globally. However with the river basin directly supporting 357 odd million people and spanning an area of 1,086,000 sq. km, the effects of pollution and overpopulation have taken its toll on the river. Cities such as Delhi, Agra, Meerut, Kanpur, Lucknow, Varanasi, Patna, Allahabad and Kolkata create and discharge massive amounts of waste water. Out of the approximate 11 billon litres of sewage that enters the river from 181 towns, only 45% is treated.

Governments have come and left, each having understood the implications of a damaged Ganga and trying to begin initiatives to clean the river. 11 states along the river have been identified for implementing a mammoth sewer network. With an operation this size several government agencies will need to come together but more importantly a large and consistent source of money is required. However it is clear that the government, with it's numerous priorities, will not be able to fund the entire project on their own and will definitely not be able to efficiently manage the operations single-handedly.

Governments have come and left, each having understood the implications of a damaged Ganga and trying to begin initiatives to clean the river. 11 states along the river have been identified for implementing a mammoth sewer network. With an operation this size several government agencies will need to come together but more importantly a large and consistent source of money is required. However it is clear that the government, with it's numerous priorities, will not be able to fund the entire project on their own and will definitely not be able to efficiently manage the operations single-handedly.

In 1985, the Ganga Action Plan was launched to improve the water quality. Phase-2 was initiated in 1993 with the aim to treat sewage before it entered the Ganga and four tributaries - Yamuna, Gomti, Damodar and Mahanadi. 2009 saw the emergence of NGRBA - National Ganga River Basin Authority which was responsible for empowered planning, financing, monitoring and coordinating authority for cleaning the river. None of this was enough and it was soon very clear that a major leap had to be made if India was to save its bountiful Ganga.

With this awareness the Indian Government has created the 'Namaami Gange' Project - a programme to conserve the River Ganga. An initial amount of Rs. 20.4 billion was allocated during 2014. A multi-entity approach including the ministries of Rural Development, Shipping and Water Resources has been adopted. Their objective is to free all villages along the river bank from open defecation by 2022 and incentives states to extend sewer reach to all 181 towns. A further Rs. 510 billion will be invested in to sewerage infrastructure during the course of this project.

With a project of this scale it was clear from the start that the government would need to join forces with the private sector. A Public Private Partnership (PPP) model made perfect sense. A PPP would help in raising additional funds and implementing various subsidiary projects such as setting up of sewage treatment plants.

The Centre has decided to completely fund certain activities under this programme, while handing over others to the private players. The disappointing results of the GAP has also driven the Centre to provide operation and maintenance assistance and they have opted for a PPP/SPV approach.

In addition a four-battalion Ganga Eco-Task Force and a territorial army unit are being planned to keep river pollution at a check.

In order to understand how a PPP could greatly help this initiative, we need to understand the financial and operational implications of the entire scheme. We spoke to Mr. Arun Lakhani, MD Vishvaraj Infrastructures, a PPP expert and a great promoter of government-private relationships.

"It is important that the objective be clear. The Ganga is crucial to the future of India and its prosperity, hence, it must be protected and developed so that it can yield all that it is capable of. This is not a one company or one government job. We must all contribute and a PPP creates an excellent path for this", said Mr. Arun Lakhani

With an estimated investment of Rs.80,000 crore need to clean the Ganga, the government is in dire need of financial assistance. The private players will be able to shoulder a great portion of this burden by bringing in about Rs. 56,000 crore.

Activists and the media too will have to play a great role by spreading awareness of the importance of this project and by encouraging the citizens to take a more pro-active and responsible approach towards the conservation of the river. A special ministry has been created by the ruling party to over see all activities related to the holy river.

With an investment of 25-30% of the total, the government hopes to encourage organic farming near the river to reduce the flow of pesticides and fertilisers in to the river and provide better sanitary infrastructure such bio toilets.

Private sector players will assist in dredging the river at certain points to allow the navigation of small ships such as the ones traversing from Varanasi to Hoogly. Tourism is being seen as a great way to boost the economies of the villages and towns along the Ganga but also as a way to encourage people to maintain the river.

The responsibility of collecting waste water and treating it will lie on the shoulders of private players who will need to maintain government-set standards and provide regular reports. "Public-Private-Partnerships are a successful model when executed with equal accountability, efficiency and honesty. Monitoring is necessary for long-term results", commented Mr. Lakhani.

In the longer scheme of things, it is yet too early to see how the PPP model will fare. If the attempt to Clean Ganga is to be successful, the government will need to remain efficient while planning, vigilante when monitoring and transparent when communicating with the public. Private sectors players entering this project will hopefully bring with them a streamlined approach, processes which will reduce time and cost and the expertise need to once again witness the River Ganga in all its power.

"We must learn to give, give, and give like the Sun, And like Mother Ganga - with no hesitation, no expectation, no vacation and no discrimination." – H.H. Pujya Swami Chidanand Saraswatiji, Founder of Ganga Action Parivar and Spiritual Head of Parmarth Niketan (Rishikesh)